Are you an accidental landlord? An accidental landlord is someone who lived in a house or inherited a house and decided to rent it out without ever planning to be a landlord in the first place. Being a landlord can be a daunting task, especially if you’re new to the game. Many accidental landlords completely misjudge what it is like to manage a rental property or choose the wrong tenants who cost them a lot of money. There are some things accidental landlords can do to make their lives easier and reduce the risk.
Here are 5 accidental landlord tips.
1. Set realistic rent prices
It’s important to set a fair and realistic rent price for your property. Do some research on what similar properties in the area are renting for and set your price accordingly. Overpriced rent can lead to longer vacancy periods, which can cost you more in the long run. You also want to have your pick of tenants, not be stuck with the only one willing to pay your price. Many times the tenants who are willing to pay more for a rental, have other issues like bad credit or evictions on their record.
According to a recent survey by Zillow, the average U.S. rental property is vacant for 25 days before being rented out.
How to get started investing in rental properties.
2. Screen your tenants carefully
A bad tenant can cause all sorts of headaches, from missed rent payments to property damage. It’s crucial to screen your tenants carefully before signing a lease. Run background and credit checks, check references, and verify employment. According to the National Association of Realtors, the most common reason for eviction is non-payment of rent. When I first started as a landlord I relied on my gut to choose tenants. That was not a smart move! I had multiple issues and I realized there are people who are really good at lying and manipulating you.
What Is The Best Way To Screen Tenants For Rentals?
3. Don’t skimp on maintenance
Regular maintenance can prevent larger, more expensive repairs down the line. Make sure to stay on top of things like HVAC system maintenance, landscaping, and plumbing. A leaky pipe left unattended can turn into a costly water damage repair. A house in disrepair can also make it harder to rent and attract tenants who you may not want.
In fact, according to HomeAdvisor, the average cost to repair water damage is $2,700.
How Much Does It Cost To Maintain A House?
4. Familiarize yourself with landlord-tenant laws
Each state has its own set of landlord-tenant laws, and it’s important to familiarize yourself with them. These laws govern everything from security deposits to eviction procedures. Ignorance of the law is not an excuse, so make sure you know your rights and responsibilities as a landlord. The laws are always changing as well. Colorado is trying to implement many changes that will make it much tougher on landlords.
How Evictions Work And How To Avoid Them As A Landlord
5. Consider hiring a property management company
If being a landlord is not your full-time job, you might want to consider hiring a property management company to handle the day-to-day tasks of managing your rental property. A property management company can help with tenant screening, maintenance, rent collection, and more.
According to the National Association of Residential Property Managers, the average property management fee is around 10% of the monthly rent.
How To Find A Great Property Manager
Conclusion
Being an accidental landlord doesn’t have to be stressful. In fact, it can dramatically increase your wealth!
By following these 5 expert tips for expert landlords, you can make sure your rental property is a success.
And if you’re looking for even more real estate investment tips, sign up for the InvestFourMore email list. You’ll receive a free book that covers how to build wealth with real estate, as well as numerous other real estate investment tips and exclusive discounts on coaching courses.
Save more, spend smarter, and make your money go further
Ordering from the menu while dining out may not get you the best deal–or even the tastiest meal.
It’s not unusual for restaurants to have hidden menus (some of which, like In-N-Out Burger’s, are not really that secret) and special deals only accessible to those diners who are in the know.
You might even get early access to a popular item—last fall, Starbucks customers who told their barista “PSL 10” could get a pumpkin spice latte a week before the drink’s official addition to menus.
Ferreting out secrets is pretty easy.
Look for the code words on brands’ web sites, Facebook pages and Twitter feeds, and on message boards catering to foodies and deal hunters like Chowhound.com and HacktheMenu.com.
And when in doubt, ask your server if there’s anything they recommend that isn’t necessarily on the menu.
Don’t forget to pay attention to your local restaurants, too—they also have secrets.
At FIGat7th in Los Angeles, there’s “3 Little Piggies,” what a spokeswoman describes as “Kurobuta pork belly, slow-braised carnitas, and prime applewood smoked bacon with chili aioli, jalapeno relish, avocado puree, provolone, pickled red onions and shredded romaine, on panini grilled ciabatta.”
Time Out New York has tracked secret menu items at local outposts such as Momofuku Milk Bar (a milkshake with mint, cookies and espresso).
In-N-Out
The secret is definitely out when a brand posts its secret menu to its own web site. But that’s just the burgers.
Frugal Foodie is partial to the Neapolitan shake (a mix of strawberry, vanilla and chocolate) and well-done fries (extra crispy).
Starbucks
There’s an entire site—StarbucksSecretMenu.net—devoted to off-the-menu Starbucks drinks.
For example, a Chocolate Covered Raspberry Frappuccino, which adds raspberry syrup, mocha drizzle and java chips to a vanilla bean Frappuccino.
Jamba Juice
Some of the most notable secret combos taste like candy.
Among those Ranker.com lists include Pink Starburst (lemonade, soymilk, raspberry sherbet, frozen yogurt, sorbet and strawberries) and Sourpatch Kid (lemonade, blueberries, lime sherbet, pineapple sherbet, raspberry sherbet and orange sherbet).
Sonic
This chain already brags that its drinks menu allows for a whopping 1,063,953 combos, and menu listings do include a number of the ones you’re less likely to pair (like Purple Sprite, which mixes in cranberry juice, Powerade and a few other ingredients).
A secret food to try: the Frito Pie, which is Fritos topped with chili and nacho cheese.
Panera Bread
Another chain where the secret items are more advertised, Panera has sent out press releases about new additions.
One to try: the Power Chicken Hummus Bowl, a salad with chicken, hummus and a variety of veggies.
McDonalds
SecretMenuholic.com has a good rundown of the stealthy menu items, which include a McFlurry with an apple pie mix-in, and the Mc10:35, a breakfast-lunch crossover of a McMuffin and a McDouble.
Frugal Foodie is a journalist based in New York City who spends her days writing about personal finance and obsessing about what she’ll have for dinner. Chat with her on Twitter through @MintFoodie.
Save more, spend smarter, and make your money go further
Previous Post
10 Financial Tips for Couples
Next Post
MintFamily With Beth Kobliner: A Penny for Your Thoughts on…
Browse Related Articles
Saving 101
The Best Restaurant Deals May Be Off The Menu
Saving 101
Dining on a Dime: Half-Off Meals and Other Deals
Financial Planning
Frugal Foodie’s Friday Meal Deals
Financial Planning
Frugal Foodie’s Friday Meal Deals
How to Dine During Restaurant Week on a Budget
How to Resist Increasing Food Prices
Financial Planning
Frugal Foodie’s Friday Meal Deals
Saving 101
Dining on a Dime: Healthy Meals For a Tight Budget
Saving 101
Dining on a Dime: Free Pancakes and Other Restaurant De…
Saving 101
Prepay Your Vacation Meals? The Skinny on Dining Plans
Reaching financial independence is like the holy grail of financial goals. After all, the ability to no longer need to work for money to live on is incredibly enticing.
Just imagine what you could do with that newfound freedom!
But the path to financial independence (or FI for short)is usually not glamorous. It requires hard work and dedication to make steady progress towards your ultimate goal of FI. But there are some strategies that can help you achieve your goal of financial independence.
Let’s take a look at these expert tips from people who have actually reached FI, or are seriously dedicated to the path of achieving it. You might find a tip that helps to transform your financial trajectory.
What’s Ahead:
1. Identify your “FI number”
Financial independence happens once you have enough money saved and invested to never need to work another day in your life. Although you might decide to work at a job you love, there is great freedom in knowing that you’ll never have to work another day in your life.
A big part of the financial independence journey is determining just how much money you’ll actually need to make this dream a reality. That number is your FI number, the goal that you should strive for when you decide to seriously pursue FI.
Although there are a few different schools of thought about how to calculate your FI number, this general rule of thumb is a great place to start:
Your annual expenses x 25 = your FI number
Personally, I am at the beginning of my journey to FIRE (Financial independence/retire early). I’m only a small part of the way to achieving the FI number that I have in mind.
But having mine in mind has helped me stay motivated to save extra diligently. I highly recommend nailing down what your FI number is, too. You might be surprised by how much having a concrete goal in mind keeps you focused on the savings goal — at least that has helped me so far!
2. Pay down debts that stand in your way
Net worth is a big part of achieving financial independence. When you check out your net worth, the debts you have will drag this number down.
With that in mind, David Alyor, recommends paying off your debts as soon as possible. As a lawyer in the final stretches of his financial independence, he says,
“After almost a decade of post-secondary studies, paying off student debts was painful, but I stayed the course and paid as aggressively as I could to get rid of my debts as quickly as possible.”
Alyor says the key to his success with debt repayment was to make a written repayment plan. Additionally, he regularly checked in with his shrinking loan balances to stay motivated along the way. He expands,
“If you’re finding it tough to make as much progress as you’d like, it’s time to look for a side hustle to increase your income earning potential and drop your debt even faster.”
3. Avoid lifestyle inflation
Lifestyle inflation is easy to justify. After all, shouldn’t you take advantage of the best that your paycheck can buy as it increases? If you are trying to achieve financial independence, then saying no to lifestyle inflation is critical.
James Diel, CEO of Textel, achieved FI several years ago. Diel says:
“Saying no to keeping up with the Jones’ helped me stick to a moderate budget that included saving 30% of my monthly income toward retirement and avoiding unnecessary big purchases that get in the way of saving.”
He recommends putting this into practice by:
“making some smart money moves early on in your career and keeping your budget low without severely depriving yourself of the things you want helps you maximize your investment profits, so you can save less now and still end up with an ample nest egg.”
4. Prioritize savings
Saving for a big goal is easier said than done. This is especially true when life throws expenses your way.
But it is possible to boost your savings by making those savings a priority. Or in other words, making it a point to pay yourself first.
Minesh Patel, CEO of thePatel Firm, is so close to FI that he hopes to achieve this big goal within the year. But when he was just starting his journey to FI, he says,
“The most critical way I could save for financial freedom, even as a young graduate with a tight budget, was to pay myself first.”
Paying yourself first sounds like a great idea. But what does it actually look like in practice? For Patel, the journey began by automatically investing some of his earnings into retirement savings every month. With that, he knew that savings weren’t being compromised. Patel says:
“Somehow, being aggressive with savings up-front and seeing less in your checking account during the month makes you feel like you don’t have the money to spend frivolously.”
5. Spend on what matters to you
Kara Metcalf and her husband reached FI in their mid-thirties and left corporate jobs to RV full-time. One of her tips is to spend with purpose.
“Every dollar you spend is a dollar that you’ll never get back.”
She encourages those on the path to FI to consider every purchase as a choice to exchange time being FI in the future so that you can have that item now. She says:
“That perspective helped me adopt a minimalist lifestyle and reduced my consumerism greatly. I really didn’t need another pair of jeans when there was nothing wrong with all of the others in my closet.”
Before you make a purchase, make sure that the item is worth it to you. You’ll have to decide for yourself what is ‘worth it.’ But taking the time to think through your purchases could lead to a decrease in spending.
6. Boost your income
The savings you create must come from the difference between your spending and your investing. Unfortunately, frugality will only get you so far.
At some point, you may need to look at the other side of the equation and boost your income to increase your savings.
Sam Zelinka, the creator of Government Worker FI, is 86% of the way to his FI goal. For his family, increasing their income was a big part of working towards financial independence.
“We’ve primarily raised our income by earning promotions in our traditional job. At the same time, we both have some small side hustles that we have used to help pay off our mortgage more rapidly.”
7. Take care of yourself along the way
It is easy to let your determination to achieve FI push you beyond your limits. But pushing yourself too hard could lead to premature burnout.
Avner Brodsky achieved financial independence through entrepreneurship. He recommends taking the time to understand your limits and learning how to play within these limits. Brodsky says:
“Understanding your limitations and being okay with admitting weakness will only benefit you in your journey of learning. Taking care of your mental health is essential when working toward FI because if you are struggling, your work will struggle.”
Take whatever actions you need to take care of yourself along the way. Remember, it is absolutely okay to slow down on your journey. Don’t push yourself beyond a healthy limit.
8. Invest for the future
Adam Garcia, the founder of the Stock Dork, is well on his way to financial independence. His tip is to consider a smart investment strategy that goes beyond savings. Garcia says:
“The idea of financial independence can easily turn on its head if you follow it blindly. For most people, the most intuitive way to start is by scrimping and saving as much as they possibly can – some even manage to set aside half of their earnings every month!”
But simply saving won’t supercharge your path to financial independence. Garcia expands:
“If you want an efficient FI strategy, you need to complement your saving efforts with investment. In other words, for every penny you save, it’s good to invest another penny so that it could eventually turn into two pennies.”
For Garcia, this concept is what he calls:
“having your cake and nibbling at it, too. It’s only possible and viable if the cake is growing at a sufficient rate that your nibbling will never cause it to disappear.”
9. Don’t try to sprint to the finish line
Financial independence is a major money goal. In most cases, it will take years (or maybe even decades) to achieve.
Anthony from The Investor Handbook wants to remind us that:
“personal finance is not a sprint, it’s a marathon.”
When you are just getting started, the difference might not be noticeable. But over time, you’ll see real progress.
As you approach your journey to financial independence, Anthony recommends thinking about the journey like working out.
“A single session working on your abs won’t give you a flat stomach, but keep at it for ten years, and you’ll definitely be rocking that six-pack.”
Imagine where you could be in ten years by choosing to make progress towards your FI goals with every paycheck. The commitment to FI could transform your life through small efforts over time.
10. Focus on your own journey
Throughout every facet of our lives, it is easy to get caught up in comparisons. That holds true for personal finances, as well.
Kara Metcalf (waiting on link) recommends focusing on your own journey. She says:
“If you compare your life to your friends, family, or coworkers, you’ll usually feel deprived or lacking because you will be saving money rather than going on extravagant vacations, buying a new wardrobe each season, or eating out every day.”
For Kara, she also says that:
“In my 20s, I hated eating my packed lunch every day while my coworkers were going out to lunch. But in my 40s, those friends still get up before the sun rises every day to commute to full-time, oftentimes soul-sucking jobs. I wake up naturally (without an alarm) and spend my days exploring beautiful new places every day.”
Remember that everyone’s journey is different. Make it a priority to focus on your own goals, and stop comparing your life to others.
Summary
The path to financial independence will look different for everyone. As you navigate the journey, tailor your spending patterns to strike a balance between your current needs and your future desires.
What steps are you taking to achieve financial independence? Let us know in the comments!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
I have recently become fascinated by the idea of Billionaire Morning Routines.
The premise is that if you want to be successful in life, then you must wake up at an early hour and dedicate time or energy towards your goals. I am still not sure how this translates into a morning routine for me, but what I do know is:
You don’t need much money to become wealthy.
Your mindset can drastically change the trajectory of your day and life.
Sometimes it can feel like the odds are stacked against you. But there’s always hope.
Personally, I have found success by following this simple morning routine that will help get me through each day and set my path for success.
Successful millionaires have certain habits that can help you be more productive each and every day! While not everyone aspires to be a millionaire, these habits can still be useful for anyone looking to increase their productivity levels.
In this post, we are going to dig into billionaire morning routines and look at some millionaire morning routines as well.
Is a cup of strong coffee enough? Or do you need to layer some more key habits of billionaires on top?
So, if you’re looking for some tips on how to be more productive, following in the footsteps of some successful millionaires is a great place to start!
Remember these are the people making 10 figures…
What is a Billionaire Morning Routine?
A Billionaire Morning Routine is a set of habits that wealthy individuals use to start their day in order to increase their chances of success. This usually involves waking up early, exercising, eating a healthy breakfast, and spending time on personal development.
These routines are a set of designated activities that can help you stay on track. A millionaire or billionaire morning routine helps you organize your day from the moment you wake up until the time you leave for work. The difference between what you’re doing and a millionaire morning routine is the way you manage your time.
Every day is different for billionaires, but their morning routine should always be prioritized by their lifestyle needs first.
A billionaire morning routine should focus on managing your time in a way that allows for consistency with priorities of lifestyle needs and productivity goals.
Why is a Millionaires Morning Routine or even a Billionaires Important?
The reason a Millionaire’s Morning Routine is important is that it sets the tone for the rest of the day. If you start your day by working on your goals and taking care of yourself, you’re more likely to have a successful day.
Don’t you want to maximize your time and get the most out of your day?
These are the key benefits of following a billionaires morning routine:
Stay focused on the important tasks at hand each morning.
Help you better prioritize your time in the morning and throughout your day.
Increase your productivity all day long.
Reduce the stress you feel each morning.
Boost your energy levels throughout the day.
In addition, a millionaire or billionaire’s lifestyle is associated with a number of benefits, including increased happiness, improved focus, and more time to accomplish goals.
There are many reasons why having a billionaires morning routine, or even a millionaires morning routine, is so important.
A millionaire morning routine is empowering because it gives you control over your life–and who doesn’t want that?
Billionaire Morning Routines
There are a lot of different opinions on how to achieve success in life, but one thing is for sure: you have to get up early if you want to be a millionaire.
You have heard the saying, “the early bird gets the worm.”
They use these routines to set themselves up for success and make the most of their time. Plus there are a few key things that all millionaire morning routines have in common.
This allows them to get centered and focus on what they want to achieve.
The billionaires’ morning routines are a good place to start when trying to improve your own routine.
Billionaire morning routines are the first place to start when trying to change your daily habits for the better. These practices provide a foundation that you can build off of as you work towards reaching your goals.
#1 – Wake up early
Wake up early to get more done in the morning.
Go to bed at a reasonable time so you can sleep well and be refreshed for the day.
Here are some tips to make waking up easier:
Have a wind-down process before bedtime.
Switch off screens an hour or two before you plan to go to bed so you sleep easily when the sun rises at 5 am.
Wake up five minutes earlier than you do now and work your way up until you wake up an hour earlier.
Waking up early is a simple change that anyone can make!
To get up early, go to bed earlier. The key to getting up early is going to bed early and having a wind-down routine so you sleep easily when you get into bed.
#2 – Meditate
Meditation can aid in concentration, creativity and reduce stress.
There are a variety of ways to meditate, including sitting quietly and focusing on your breathing.
When it comes to improving productivity, many people think that meditation is a waste of time. However, this could not be further from the truth.
In fact, there are a number of reasons why you should meditate every day:
Lowers your stress levels
Helps you focus
Improves creativity
Provides answers to unexpected problems
Helps make decision making easier
Keeps you less distracted throughout the day.
The hardest part of meditation is getting started, but it’s worth it if you have the discipline to stick with it for even 5 minutes a day or do some other form of relaxation therapy before falling asleep at night.
It doesn’t matter how long you do it, as long as you’re getting the benefits from it.
#3 – Glass of Water
Drinking water in the morning can improve general health and well-being.
Celebrities including Kim Kardashian, Beyoncé, and Cameron Diaz have touted the benefits of drinking water regularly.
Water is essential for life. In fact, our body is composed of about 60% water. We lose water every day through sweating, breathing, and urination, so it’s important to replenish our fluid intake. Drinking a glass of water in the morning can reduce calorie intake and improve mental performance.
Drinking water in the morning can help you stay alert, make you more energetic, and provide the necessary fuel for your brain. It’s important to drink water first thing in the morning because it hydrates quickly and fuels your body. Drinking water is also a great way to hydrate for a long day of work or play later on that day.
#4 – Exercise
The wealthiest people in the world begin their days with some exercise. They choose to perform this activity in the morning so that it doesn’t get forgotten among all their other daily responsibilities.
Richard Branson, a British billionaire, exercises every morning without fail.
Exercising boosts your confidence, has positive effects on your mood, and helps them focus throughout the day.
The key is to find a way to incorporate exercise into your routine each day. Find an exercise that works for you and stick with it.
Wake up early and exercise. Exercise is a great way to start your day off on the right foot. It gets your blood flowing and helps you wake up mentally and physically. Plus, it’s a great way to get in some extra fitness goals for the day!
#6 – Read a book
Reading can boost cognitive activity in the brain. This means that you’ll be more alert and prepared for whatever challenges the day throws your way!
Also, reading before bed can help calm the mind and prepare the body for sleep.
# 7 – Eat a healthy breakfast
Many successful people have made breakfast a key part of their morning routine.
Starting your day off with a filling meal can help you stay focused, give you more energy, and help you concentrate on the work you need to accomplish later in the day.
Breakfast is the most important meal of the day, and it’s especially important to eat a healthy breakfast. Eating breakfast helps your body and mind function at their best. It can give you energy for the day ahead, help you focus, and provide necessary nutrients for your brain.
There are many different types of healthy breakfasts that you can try. Some people like to have eggs, others prefer yogurt or granola. Kelly Ripa has coffee, yogurt, and granola as a breakfast routine; Barack Obama has eggs, potatoes, and wheat toast. Reese Witherspoon’s go-to green smoothie recipe has been her breakfast routine for the last nine years. Idris Elba keeps it simple with toast during his morning routine.
No matter what you choose to eat for breakfast, make sure you drink plenty of water as well.
On the flip side of the coin is fasting during breakfast and maybe even lunch.
#8 – Plan your day the night before
Plan out your day ahead of time. One of the best ways to ensure that you make the most of your time is by planning out your day ahead of time. This will help keep you organized and focused on what’s important.
Determining when during the day is the best time to tackle your toughest jobs can help reduce stress and increase performance.
Journal your thoughts, plan your day, and focus on what you want in life.
Goals don’t happen unless they are written down and acted upon.
One way to make sure you start your day off on the right foot is by planning your day the night before. This way, you can wake up knowing what you need to do and have a plan in place for how you’re going to get it done.
Reflecting in the evening about what you want for yourself can help solidify your intentions and give them power by writing them down for review each day.
#9 – Plan the day ahead
Others prefer to plan their day in the morning.
Getting out of bed and putting your best foot forward EVERY SINGLE DAY is important for having a successful morning routine.
By planning out your tasks, you will be better prepared to face any challenges that come your way during the day.
To help with this, try creating a morning routine that fosters a healthy mind, body, and spirit. This will get you ready to operate at peak performance.
In order to be successful, you have to know your schedule so you can plan time blocks for specific activities. There are only so many hours in a day – you must make sure they are well spent.
#10 – Create your routine
Creating a routine for your morning will help you accomplish more with your time, starting your day off on the right foot, and it will also give you a chance to start your day off with joy before any hustle or stress begins.
Some of the benefits of a millionaire morning routine include stress-free, accomplished things, and increased levels of happiness.
However, remember that the Millionaire Morning Routine is not the only one out there! You can start your day by hitting the ground running but don’t copy and paste a billionaire’s exact routine. Billionaires set their days apart with goals, so try our goal-setting worksheet to get a head start!
There are many factors to consider when deciding if a millionaire morning routine is for you, such as the goals you want to achieve and your schedule.
However, you need to create a routine that works for you. Below, you will see some samples from billionaires, but at the end of the day, it has to work for you.
When you have something to look forward to at the beginning of each day, it helps reduce stress and makes you happier. It’s also a way to get your day started on the right foot.
What time does the average billionaire wake up?
There is no average billionaire wake up time because there is no average billionaire.
However, it is well known that most millionaires and top executives wake up early in the morning. Some may be up by 4 am while others start their days between 6-7 am.
This gives them plenty of time to get ready for their day and start working on their goals.
Waking up early is a great way to start your day. You have more time to get things done, and you’re less likely to be stressed out. In addition, it’s a good opportunity to meditate and clear your mind before getting started on your work.
Billionaire Morning Routine Examples
There’s no one right way to have a successful morning routine, but many millionaires and billionaires have habits that they credit with helping them achieve their goals.
Others include setting priorities for the day and planning ahead.
There are many different morning routines that billionaires follow in order to achieve success. Some of these routines include waking up early, exercising, and reading. Others involve spending time with family and friends or networking.
No matter what a billionaire’s routine may be… the most important thing is that they stick to it and make sure they are taking steps each day to move closer to their goals.
These billionaires have different workdays, but all follow a similar daily routine to keep their minds and bodies in check.
Elon Musk Morning Routine
Elon Musk is a well-known entrepreneur and investor. He is the founder, CEO, and CTO of SpaceX, co-founder of Tesla Motors, and chairman of SolarCity. He also has a keen interest in artificial intelligence.
First of all, sleep for Musk is minimal with him going to bed around 1 am and back working by 7 am.
Musk has a routine that includes 5 minute blocks. In each block, he does one thing that is important to him. This could be making calls, sending emails, or working on a project. By doing this, he is able to focus on one task at a time and avoid distractions.
Musk’s routine also includes planning out how long it will take him to complete tasks throughout the day so that he can be sure not to waste time on tasks that are unnecessary or take too much time. This prevents him from feeling rushed and allows him to focus on the most important tasks. He makes a solid plan for his day in order to prioritize what he needs to accomplish – even though it may not go as he planned.
Kylie Jenner Morning Routine
Jenner wakes up early which is credited to her mom as setting an example for rising early. This self-made billionaire is not sleeping in at all, especially with her daughter.
The most intensive part of her morning routine is getting herself glammed up for the day. She will not eat breakfast without her makeup on. Workouts? She is known to work out 1-2 times a day depending on her schedule.
Finally, she eats breakfast and starts working on her business.
Waking up early and exercising sets the tone for the rest of her day and allows her to get things done efficiently.
Jack Dorsey Morning Routine
Jack Dorsey is the founder of Twitter and Square. He has a very unique morning routine that some people might find inspiring.
He wakes up at 5:00 am and spends his early hours on personal care.
First, Dorsey starts off by taking an ice bath to shock his system. This supposedly boosts mental confidence, which is necessary for running two major tech companies.
After the ice bath, he spends 60 minutes meditating in silence. This prepares him for his five-mile walk or jog to work. He skips breakfast, which many people find controversial.
He wraps up his day by journaling and reflecting on what went well and what could be improved.
Warren Buffet Morning Routine
Let’s be honest… many people look at Warren Buffet for inspiration and guidance. He is a wealth of knowledge that has lived throughout many of the toughest points in our nation’s history.
Billionaire Warren Buffet reportedly wakes up at 6:45 am and drinks a can of Coke. Then, he heads to the local McDonald’s for breakfast.
Very opposite of what most people would assume. But this morning routine has served Buffet well for years.
Warren gets down to business. He explains that most days, he just sits in his office and reads finance-related materials all day – specifically related to company financials, market materials, financial journals, and investor reports.
After leaving the office, Buffet goes home and might pick up fast food from time to time, but typically eats at home later in the day. A little reading before bed around 10 pm.
Oprah Winfrey Morning Routine
Oprah Winfrey is a famous American talk show host and actress. She wakes up at around 8:00 AM every day, brushes her teeth, lets the dogs out, and then starts her morning routine.
She places importance on reading at least five cards from her 365 Gathered Truths box each morning. More than likely she started with saying any of these money affirmations before she found her fame.
Oprah has a routine that includes a couple of hours spent on spiritual exercises, followed by an hour of low-impact strength-training program. She also spends time with her family and friends before finally starting work in the afternoon.
Jeff Bezos Morning Routine
Jeff Bezos has a very strict daily routine that he follows. He wakes up early (somewhere between 5:00 am -6:30 am) and begins by reading the news. After that, he spends time with family, eats breakfast, and does various activities that are not work-related.
His first business meeting starts at 10 am normally working on Amazon business matters. He has business meetings and visits fulfillment centers in the afternoon, but avoids important decisions late due to fatigue.
Sleep is important to this entrepreneur and goes to bed earlier than most.
What is the most successful morning routine?
The most successful morning routine for many people includes a mix of habits that help them start their day off on the right foot. This may include waking up early, drinking a glass of water, eating a healthy breakfast, and spending some time in prayer or meditation.
In order to be successful, it’s important to have a morning routine that incorporates good habits.
If you struggle with habits, then I highly recommend you read the book Atomic Habits. These habits are easy to incorporate into your own life and will help you accomplish more tasks and live like a billionaire.
How long does the 1 billion dollar morning routine take?
The 1 billion dollar morning routine was created by Jim Kwik, a YouTube creator.
It takes at least one hour to work through his 1 billion dollar morning routine.
Here are the key principles for Jim Kwik’s 1 billion dollar routine (source):
Recall your dreams
Make your bead
Drink water and take supplements
Focus on breathing
Meditate for 15-20 minutes
Move the body for 1-2 minutes
Take a cold shower
Enjoy a cup of tea
Journal
Create 3 lists: to-do list, to-be list, and to-feel list
Read for 20-30 minutes
Make a brain smoothie
Participate in brain training.
Start with the most difficult (and important) task
Self-care, self-love, and setting a vision and direction for the day are essential components of this routine. And don’t forget about hydration! A glass of water is a great way to start your day off on the right foot.
Journaling is another important part of this routine. It allows you to check-in with yourself about your stressors and how to navigate them. Consider implementing a few of these steps into your routine to see how they make you feel.
The 1 billion dollar morning routine may not be feasible for everyone, but some of the steps included are still worth considering (particularly the one about having a plan). Or moving some of the activities to other parts of the day.
What are the habits of a billionaire life?
In order to achieve success in life, it is important to emulate the habits of a billionaire. This may seem daunting at first, but if you take a closer look at what these individuals do on a daily basis, you will find that many of their habits are actually quite attainable.
For example, many billionaires are avid readers and they make sure to read something every day. They also have a strong focus on personal finance and know how to manage their money well. Additionally, they understand the importance of taking care of themselves both physically and mentally. All of these habits are important for anyone looking to achieve success in life!
These types of people are the opposite of I don’t want to work anymore.
What will your productive morning routines look like?
There’s no “right” way to have a productive morning routine – as long as you’re committed to it and conforms to the same principles.
For example, many successful people have different routines but they all commit to following them. This may include things like personal commitment, engagement, team building, and productive motion.
It’s also key to be flexible with your routine so that you can adjust when necessary. For instance, if something comes up or there’s a change in your schedule, you’ll be able to adapt without too much trouble.
The important thing is that you make time for the things that are important to you and that help you achieve your goals.
This might include exercise, breakfast preparation, or “mindful living.”
Whatever it is, make sure it works for you and that you’re actually going to stick with it!
What will go on your Billionaire Morning Routine List?
Most morning routines of millionaires and billionaires weren’t created overnight; they’re crafted over time. Same with buying their mansion.
So don’t worry if you don’t get everything right the first time around–just keep working at it and you’ll see results soon enough!
Get out of bed and put your best foot forward EVERY. SINGLE. DAY.
Each person’s journey to greatness will be unique, but by following the examples set by these successful individuals, you’ll be on your way to achieving anything you want!
Having a millionaire morning routine means that you start your day stress-free. It also helps you achieve your goals. The benefits of the millionaire morning routine vary depending on the schedule and personality of each individual.
But, in general, incorporating a project into your morning routine can help you feel more in control of your life, boost energy levels throughout the day, and make healthier choices.
In fact, check out these millionaire quotes.
The habits of successful millionaires can be applied to any area of your life for increased success.
Finding your own productive morning routine is better than leaving your luck up to left hand itching.
Know someone else that needs this, too? Then, please share!!
Want to get a rep as the grillmaster with the fastest flip?
Be known as the neighbor with the sassiest sauce?
Find your perfect apartment now!
Learn how to work your apartment community barbecue grill like a pro when you follow these rules of the roast!
Master your main course Whether you are a meat-eater or a veggie-lover, you can increase your BBQ clout by mastering a main course. Understanding how to grill different types of meat or how to barbecue veggies to perfection takes time. Start by picking one main dish to master. When you can make the most amazing hot dogs or pork chops, you’ll be a sizzling sensation at the community grill.
Choose your weapon Your apartment community may provide grills for residents to share and enjoy. If you want to invest in a personal grill, however, you have plenty of grilling options.
When you want to fire it up fast, a gas grill is right for you.
If you can wait patiently for chargrilled flavor, then a charcoal grill is your best bet.
If you are afraid of fire — but love cooking outdoors — try an electric grill.
Not all grills are created equal, but just about any grill can make a mean burger!
Know the rules of the grill The most important of all grilling tips is to always follow your community’s grilling guidelines. A good grillmaster takes risks with flavor combinations, but not with grilling safety. Check the Hearth, Patio and Barbecue Association’s list of safety rules.
Most apartments won’t let you have combustible materials within 10 feet of a building or decking, so discuss the details with your property manager before grilling out. Or use your community grill to play it safe (and make friends!)
Come equipped For the best results, assemble great grilling gear. There’s a cornucopia of grilling tools on the market ranging from frugal to fancy. No matter how much you spend, you’ll need the basics:
Spatula
Tongs
Meat fork
Marinade brush
Carving board
Meat-slicing knife
Meat thermometer
In addition to these essentials, you can spice things up with specialty grill gear like a monogrammed steak brand or a hot dog rack.
Season with style A list of barbecue tips and tricks wouldn’t be complete without a mention of sauces, rubs and marinades. These tasty additions add oomph to an ordinary piece of meat. You might try the sauces on your local grocer’s shelf, or get exotic and join a BBQ Sauce of the Month club.
Share your skills You’ve worked hard learning to barbecue like a pro, so don’t keep that rack of ribs all to yourself. Plan one night a week to grill out with your friends and show off your skills. Ask them to bring side dishes, drinks and desserts to help round out the menu. At least once a year, heat things up by hosting a grilling competition!
More Summer Apartment Living Links Summertime…. Apartment Living is Easy!How to Grow Strawberries on Your Apartment Porch Summer Pet Care Tips
Taxes are unavoidable but that doesn’t mean you have to pay more than you owe. What happens to your tax liability with proper financial planning? The simple answer is that it can allow you to minimize what you owe while preserving more of your income to fund your financial goals. Talking to a financial advisor is a good first step in creating a strategy for effectively managing tax liability.
Understanding Tax Liability
Tax liability refers to the money that an individual, business or organization owes to a federal, state or local tax authority. A simpler way to think of your tax liability is the difference between your taxable income and the tax deductions you’re able to claim.
As a general rule of thumb, earning a higher income can result in a higher tax liability. The U.S. uses a graduated tax system, which means that income and tax rates move together. As income increases, so does your tax rate.
The amount you pay in taxes is determined by your income, but capital gains can also affect your tax liability. That’s important to know if you’re focused on investing and building wealth, as higher net-worth individuals may face a steeper tax liability if they’re reaping capital gains from investments.
What Happens to Your Tax Liability With Proper Financial Planning?
Managing your tax liability is important as it can directly influence how much of your income or investment earnings you get to keep. The more income and assets you have to work with, the easier it becomes to build wealth.
Proper financial planning can help you implement strategies that are designed to minimize taxes while maximizing income and assets. Having a solid financial plan in place can generate significant tax savings year by year. You can then use those savings to generate additional income through investments, grow your retirement accounts and increase your net worth.
Does financial planning require you to work with a financial advisor? Not necessarily. You could always go it alone. But there are some distinct advantages to having a financial advisor help you formulate a plan for managing tax liability.
Financial advisors have extensive knowledge about how tax planning can affect your financial plan. A good advisor is also familiar with the tax code and the latest tax rules. Even if you think you have a relatively straightforward tax situation, a financial advisor may be able to pinpoint areas where you can improve tax efficiency that you might have missed.
Financial Planning Strategies for Minimizing Tax Liability
There are different ways to approach tax planning in order to reduce your tax bill, depending on the specifics of your situation. If you’re working with a financial advisor to create a tax plan, then it may include any or all of the following.
Retirement Planning
Retirement planning is a focal point of a solid financial plan, particularly with regard to taxes. Aside from ensuring that you have enough money to retire, it’s also important to consider how much of your savings you’ll be able to keep once you start making withdrawals.
In terms of how you plan for retirement, your financial advisor may suggest any of the following:
Maxing out annual contributions to a traditional 401(k) or to a Roth 401(k) if you have that option.
Contributing money to a traditional or Roth IRA each year.
Funding a Health Savings Account (HSA) if you have that option with a high deductible health plan.
If you’re self-employed or own a business, you might open a solo 401(k), SEP IRA or SIMPLE IRA to save for retirement instead. It’s important to understand the tax treatment of different retirement savings options.
For example, traditional 401(k) plans and traditional IRAs allow for tax-deductible contributions. Qualified distributions are taxed as ordinary income in retirement. Roth accounts don’t offer a tax deduction, but you can make withdrawals tax-free when you retire.
A Health Savings Account is not a retirement account, per se. It’s meant to be used to save money for medical expenses, but it can double as a source of retirement income since you can withdraw funds for any purpose after age 65 without a tax penalty. You’ll just owe regular income tax on withdrawals.
Investment Planning
Investment planning is related to retirement planning, but it can include different aspects of managing tax liability. For instance, say that you’re investing through a taxable brokerage account, which is subject to capital gains tax. Your financial advisor can offer different strategies for managing tax liability, which may include:
Holding investments longer than one year to take advantage of the more favorable long-term capital gains tax rate.
Choosing tax-efficient investments, such as exchange-traded funds (ETFs), which can trigger fewer turnover events than traditional mutual funds.
Harvesting tax losses to offset some or all of your capital gains for the year.
Your advisor may also be able to guide you on how to deduct expenses related to investment properties if you own one or more rental homes. They could also help with executing a 1031 exchange if you’re interested in swapping out one property for another to minimize capital gains tax.
Tax Deductions and Credits
Tax deductions reduce your taxable income, which can help to push you into a lower tax bracket for the year. There are numerous expenses you might be able to deduct, including:
Mortgage interest
State and local taxes
Charitable donations
Business expenses
Self-employment expenses
Medical expenses
Student loan interest
Tax credits, meanwhile, reduce what you owe in taxes on a dollar-for-dollar basis. For instance, if you owe $1,000 in taxes and qualify for a $1,000 tax credit, the credit can wipe out what you owe. Some credits are refundable which can increase the size of your tax refund for the year. A financial advisor can walk you through the various deductions and credits you might be eligible to take in order to reduce your tax liability.
Withdrawal Planning
As you approach retirement, it’s important to consider how you’ll withdraw the money that you’ve saved. Your advisor can discuss different strategies for withdrawing money from a 401(k), IRA or taxable brokerage account so that you’re not overpaying taxes or draining your retirement reserves too quickly.
Your advisor may also discuss ways to tax-friendly ways to create supplemental income in retirement, such as purchasing an annuity or taking out a reverse mortgage. An advisor can also help you figure out when to take Social Security benefits to maximize your payment amount and how to coordinate those benefits with other sources of income in retirement.
The Bottom Line
Knowing what happens to your tax liability with proper financial planning is important for creating a long-term strategy for growing wealth. Handing over more money than you need to in taxes doesn’t offer any tangible benefit and it can be problematic if it leaves you with less money to save and invest. Having a trusted financial advisor to work with can ensure that you’re meeting your tax obligations without shortchanging your goals.
Financial Planning Tips
Tax planning can seem complicated if you’re not well-versed in the Internal Revenue Code. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Robo advisors can offer a more affordable way to manage financial planning, as the fees may be lower than what traditional advisors charge. However, it’s important to know what you’re getting for the money. For example, some robo-advisors offer tax loss harvesting but not all of them do. Additionally, robo-advisors aren’t really equipped to offer one on one advice about tax planning or investing. Those are good reasons to consider working with a human advisor instead, even if it means paying a slightly higher fee.
Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.
The word timeshare is often associated with the same sneaky, slimy vibes that emanate from the backrooms of the car dealership during sales negotiations. They both are thought to involve high-pressure sales tactics, a big loss in value the second the purchase is made and rash decision-making you may regret later.
I don’t dispute those things are often quite true, but my timeshare purchase involved no salespeople, no pressure and (so far) no regrets.
And before you discount me as someone who has no clue what I’m talking about or that’s in denial, I travel on points and miles a lot of the time, am pretty adept at hunting travel deals and used math to decide that this purchase was a good one for us.
Here’s why buying a timeshare made sense for me, even though it absolutely won’t — and shouldn’t — make sense for everyone.
Related: 5 things to know about renting a timeshare
Buying a timeshare that doesn’t call itself a timeshare
We bought two contracts in the Disney Vacation Club, which is Mickey’s version of a timeshare … even though that nine-letter word isn’t one Disney uses on its public branding. But make no mistake, what we bought is indeed a timeshare — or two, to be more accurate.
With the Disney Vacation Club, you purchase a set number of points tied to a specific resort to use each year through the end of the contract. An agreement at a new property, such as the new villas at the Disneyland Hotel, is valid for 50 years, while getting a contract at existing properties usually means a shorter time frame, with some being as short as 19 years, ending in 2042.
The two smaller contracts we bought are for Disney’s Aulani resort in Hawaii (expiring in 2062) and the Polynesian Village Resort at Walt Disney World (expiring in 2066), for a total of 155 annual points in the Disney Vacation Club program. While you have priority booking 11 months from the date of travel at your home resort where you “own,” you can use the points within seven months of travel at any Disney Vacation Club resort with availability — with some caveats that we’ll mostly leave for this guide we have on how the Disney Vacation Club works.
Both of our contacts were purchased on the resale market, which means we are paying significantly less than what Disney would want for a direct DVC membership. A downside of buying resale is you can only pick through existing contracts instead of crafting exactly what you might want to design from scratch. You also don’t get some of the discounts and perks that come from owning at least 150 DVC points directly from Disney (such as access to the DVC lounges in the parks and being eligible for some less expensive annual pass types).
Sign up for our daily newsletter
I’ll get more into the numbers below, but we have a long track record of taking a variety of Disney vacations year after year, so I feel pretty confident that will continue for the foreseeable future. And I know what we often spend to stay at Disney resorts, which makes the math against the price to own easier. And there is a bustling market for renting DVC points that very much has my attention.
Related: How to rent Disney Vacation Club points to save money on Disney stays
Why now was the time to buy
While I’ve had a mild curiosity about becoming a Disney Vacation Club member for a few years — and have rented DVC points numerous times — there are a few reasons now was the time to purchase.
Disney has the first right of refusal to buy back all of its Disney Vacation Club contract resales. Once the buyer and the seller agree on a price, Disney then has 30 days to buy the contract back at that price itself, thus taking it away from its intended buyer. And historically, Disney really would exercise that right some of the time, especially on contracts where prices were low.
For example, according to the DVC Resale Market, a site that lists some DVC contracts for sale, by March 2022, Disney had already exercised its buy-back clause on 244 contracts that company had helped to sell by March that year. In contrast, by March this year, that buy-back number for the year was just four — and all of those were from January, with none shown since then.
With almost no Disney buybacks happening in the last few months, some contracts are selling at cheaper prices than historically was possible. With prices trending down, inventory trending up and Mickey not swooping in to buy back the best deals at a normal clip, now was the time for us to buy.
The math behind my timeshare purchase
Before I share our numbers, let me emphasize one more time that this isn’t for everyone — it’s not even right for most Disney aficionados. Smaller contracts also cost more per point than larger contracts, so you can get better deals on a per-point basis if you are willing to buy more points. We wanted to minimize risk by staying small, so we paid a bit more per point as a result. Here’s how it broke down for us.
For our Polynesian Village contract, we bought 55 points for $156 per point at a total cost (with dues, closing costs, etc.) of just over $9,300. For our Aulani contract, we bought 100 points for $108.50 per point for an all-in cost of just over $12,600. And yes, it is totally normal for some resorts to cost much more than others, as you see with our Aulani and Polynesian purchases. This is due to the cost of annual dues at each property, the desirability of booking further in advance at that property and the number of years left on the contract.
1 of 3
Disney’s Polynesian Village Resort. SUMMER HULL/THE POINTS GUY
So for about $22,000, we now have 155 Disney Vacation Club points to use each year until the contracts expire. That cost may sound nuts by itself. But remember that at current rates, we also will owe $914 per year for dues on our Aulani points and $437.25 for our Polynesian points, and those numbers will likely only increase over time. So that means $1,351.25 per year just to own the points based on this year’s prices.
But here’s why it’s not as crazy as it likely initially sounds.
Right now, it is very realistic to rent your DVC points out for stays as an individual at $20 per point, with some getting higher or lower amounts. If we rented all 155 points out at that $20 rate in a year, that would mean getting $3,100, which way more than covers the dues. In fact, using current rates to rent out points and for dues (knowing both will likely increase as the years go by), we’d recoup the cost we spent to buy the contracts if we did that for 13 of the 39 years we will own both contracts — including covering the cost of the dues in the years we fully rent the points out.
Now, I’m not saying that’s my plan, but that’s the math. For those curious, per the terms, you can expressly rent out points, but not in a pattern that constitutes a commercial enterprise.
So now let’s talk about math when using the points, which we absolutely will do.
You can use the points to stay at Disney resorts starting at just 7 points per night at Deluxe resorts such as Disney’s Animal Kingdom Lodge. By owning 155 per year, we have the opportunity to cover numerous nights at Disney with the points we now own if we are strategic about how and when we cash them in. But for now, let’s be extra conservative and say our stays in studio villas will average 20 points a night. With that math, we get between seven and eight nights a year out of our points.
1 of 3
Disney’s Animal Kingdom Lodge. SUMMER HULL/THE POINTS GUY
If, for the 39 years that we own both contracts, we used all the points ourselves and got an average of 7.75 nights at high-end Disney resorts from our points using a 20-point per-night average, that’s a total of 302 hotel nights (not even counting the additional four years of stays on our Polynesian points).
Not counting annual dues, that comes to a “cost” of $72.85 per resort night from the all-in original purchase price. Using today’s cost of dues, then counting annual dues, that cost jumps to paying $247.35 per night. This amount will go up, but likely so will the average cost of hotel stays booked directly, so using today’s dollars for both should give an apples-to-apples idea of the cost.
That’s not a cheap nightly rate for a hotel, but if you take a look at the going nightly rate for a night at Disney’s Polynesian Village Resort, Aulani Resort, Disney’s Grand Floridian Resort & Spa and other spots we like to stay, rates are often $500-$700. And compared to that, $247.35 per night starts to look more like a deal. And remember, this was using a conservative average nightly points rate compared to where nightly points rates start, so the more nights we redeem for lower points, the lower the average rate we are “paying” per night.
When you then factor in that there are other options for the points in the years that you may not want to go to Disney, such as gifting family and friends or even renting them out a stay, the math — for us — starts to look less and less outrageous.
Related: These are the best hotels at Disney World
What happens if we don’t want it anymore — or die?
If it turns out that eventually, we don’t want to own one or both of these Disney Vacation Club memberships anymore before the deeds expire, we can put them up for resale.
The good news is we bought at resale prices, so while no one knows what the future market is for these contracts, hopefully, we’d be able to get out of the memberships without getting too upside down since we didn’t pay retail. So far, someone has always been willing to buy a DVC membership as long as the price is right, so it’s not a question currently of if you could sell, but for how much.
But if no one bought them, we’d continue to be on the hook for the dues until we could offload them somehow. This is one reason we kept our purchase on the smaller side.
Since my husband and I are both on the deeds, if one of us dies while the deed is active, the other of us keeps on trucking with it. If we both die before the time is up on the deeds, then they become a piece of deeded real estate subjected to your will(s), those getting your inheritance, the probate process, etc.
Once our kids are adults, we could also add them to the deed(s) if it seems Disney is going to continue to be a part of their lives. Some people approach these purchases with a trust in mind as the owner. Naturally, there are implications to all of the proceeding options that would need to be worked out with lawyers and the like, so don’t take my word too seriously on any of that, but know that there are some implications of owning a deeded timeshare beyond just the cost to own.
Bottom line
Should any rational person spend $22,000 buying timeshares on the resale market — and still be on the hook for over $1,000 in annual dues for the next several decades for Disney resort stays? Maybe not. Probably not.
But on the other hand, after running the numbers many times and looking at our track record of vacations spanning more than the last decade, it started to feel absurd not to give this a try. And if it all goes south, then future me will hope that there’s someone out there like current me that thinks this is worth giving a try.
You want to started investing but aren’t sure what steps to take. No worries. Let me walk you through the basics and you’ll soon be on your way.
Before we start, you should know that the stock market offers a great way to grow your wealth. However, with the reward of earning 5%, 8%, or even 12% per year on your investments comes with the risk of losing money.
That means the value of your investments may drop one year. It may also take several years to recover from that loss. If you aren’t ready for the risks, then investing is not for you.
Think about These Issues Before You Start Investing
Investors are urged to invest for long term gain. This is due to changes in the market (those gains and losses you will see).
If you will not need your money for a minimum of 5 – 7 years, then you are the perfect candidate for investing. The between now and when you need your money is called the time horizon. For example, if you are investing toward buying a small cabin on the lake in 15 years, then your time horizon is 15 years. However, if your child will be heading off to college in 4 years, your time horizon would be 4 years.
Your time horizon is not the only thing you should know. Ask yourself a few other questions as well:
Am I investing for retirement, education, or another purpose?
How much do I have to invest, and is that money available in a lump sum, a regular monthly amount, or both?
Am I wanting to spend my time managing these investments?
How much money do I want to spend in investment fees?
What amount of fluctuation from the U.S. stock market performance am I willing to accept?
Your responses will guide your investing decisions, not only for the types of investments but also the brokerage firm you choose.
Consider Investing for Retirement with Low-Cost Index Funds
Let’s say you are investing for retirement, have an initial investment of $3,000. The plan is to add $100 each month to your account. You goal is to spend little time managing your investment. In addition, you would like to closely match U.S. stock performance (either the S&P 500 or the entire market). What should you do?
You can open an IRA with an online brokerage firm such as E*Trade, Fidelity, Schwab, TD Ameritrade, or Vanguard. To get started investing, you will need to fund your account. Funding is how the money moves from your account to your investment accounts.
In most cases, funding is arranged by setting up a link between your checking account and the brokerage account, and making transfers. The initial process can take a few days but after the connection is established, you can move funds to purchase shares of stocks, mutual funds, or ETFs.
Next, purchase either commission-free, market-index exchange-traded funds (ETFs) or no-load, no-transaction-fee market-index mutual funds. For example, you can buy shares in Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) for a minimum initial investment of $3,000 and additional investments of at least $1. You will want to make sure you sign up for paperless statements so you can get the $20 account fee waived.
Or, you could purchase shares in commission-free Schwab U.S. Broad Market ETF (SCHB) for $1,000 (or any multiple of its market price, which is about $50 at this writing); and make additional minimum purchases that equal the fund’s share price.
Buy Individual Stocks If You Are Comfortable with Greater Risk
Alternatively, you may be interested in growing your wealth more aggressively and are willing to accept risks (and losses) associated with potentially greater rewards. You have plenty of time to spend evaluating and selecting individual stocks plus you don’t mind paying transaction fees associated with the purchase and sale of stocks (or sector or specialty mutual funds or ETFs).
Again, you could open a regular brokerage account with any of the online brokerage firms. You might look at investing with Acorns, E*Trade, Schwab, or Fidelity. Keep in mind that each on-line firm has minimum investment thresholds that you will need to meet. You could choose stocks on your own or find ones using screening tools available on each firm’s website.
After determining what you’d like to buy and the approximate quantity, you’ll want to set a price to indicate how much you are willing to pay for shares and then place your order. Fees to place orders typically run about $9.99 or less.
Decide Whether Innovative Brokerage Firms Are Right for You
You might also consider investing with a newer firm, such as Betterment, Motif Investing, or Loyal3; these companies all have unique approaches to serving customers that may or may not meet your needs.
Betterment makes investment decisions on your behalf and charges an account management fee rather than individual transaction fees; you may like this approach if you don’t have time to invest on your own. Motif Investing offers fee-free investing through its Horizon Motifs, which are comprised primarily of market index ETFs, along with its specialty motifs that trade for a flat $9.95 fee. Loyal3 has a totally fee-free platform in which you can buy shares (or even fractional shares) of certain stocks with an investment of as little as $10.
If you are ready, now is the time to get started in investing, regardless of whether the market is up or down today. The sooner you start, the more your money can grow.
Julie Rains is a freelance writer specializing in personal finance, mortgages, and investing. She writes for her own blogInvesting to Thrive as well as other media outlets including Wise Bread and Loans101.
Julie holds a Bachelor of Science in Business Administration with a concentration in Finance from The University of North Carolina at Chapel Hill. Julie started investing soon after graduation and has continued to invest and learn over the past 20+ years. In her free time, she enjoys cycling with friends and spending time with her husband and nearly grown sons.
Once upon a time, retirement in America was referred to as “a three-legged stool.” The first leg was your expected Social Security benefits, the second leg was your own personal savings and the third was something old-timers called a pension.
A financial advisor can help you create an income plan for retirement. Find a fiduciary advisor today.
A pension – also called a “defined benefit plan” – is a payment from a former employer that was (and sometimes still is) offered as a benefit with no contribution from you. The payment amount is based on years of service with that company. Once you’ve worked long enough to become “vested,” your benefit is guaranteed at a certain age and doesn’t end until you die. In many cases, a surviving spouse can receive a reduced benefit.
In 1975, there were 103,346 pension plans in the United States, a number that started to decline in the early 1990s and dwindled to just 46,577 plans by 2020. In many cases, the companies that promised those pensions have been sold, merged or gone out of business. However, many workers who are still entitled to receive those benefits lack any details about their pensions, including how to go about collecting them.
Unclaimed pensions are waiting to be claimed by at least 80,000 people, according to the Pension Benefit Guaranty Corp. (PBGC), the federal agency that oversees retirement security for Americans. In some cases, the people entitled to those pensions don’t even know they’re eligible to receive payments.
Resources For Locating an Unclaimed Pension
If you’re looking for a missing pension – or want to find out if you qualify to receive one, try these resources:
Previous employers. Keep your contact information updated with the benefits administrator at the companies where you worked or their successors.
Legal assistance. The Pension Rights Center is an information resource that also runs Pension Counseling and Information Programs in 31 states. These programs provide free legal assistance for help with pensions, profit-sharing and retirement savings plans.
In states without counseling and information programs, the Pension Rights Center’s Pension Help America offers assistance in finding counseling projects, government agencies and legal service providers.
Meanwhile, the National Pension Lawyer’s Network, an affiliate of the Pension Rights Center, is a free service that can refer you to lawyers who take pension cases, sometimes pro bono.
Employee Benefits Security Administration. The EBSA is part of the U.S. Department of Labor and has free counselors who can answer pension questions. The E-Fast feature on the agency’s website can find pension plan annual reports going back to 2010, which explain how to file a pension claim. The Abandoned Plan Search Tool is also on the agency’s website.
Other resources. Pension Benefit Guaranty Corp. (PBGC) can help with claiming a pension. You can call for assistance toll-free at 800-400-7242.
Meanwhile, the National Association of State Treasurers runs the National Association of Unclaimed Property Administrators, a network of to help locate unclaimed assets. Additionally, the National Registry of Unclaimed Retirement Benefits is run by PenChecks, the largest independent processor of retirement benefit distributions in the U.S.
Bottom Line
As defined-benefit pension plans have been phased out in favor of 401(k) and similar accounts, workers may not know that they qualified for a pension many years ago. In addition, as older companies have been sold, merged or closed pension plans can lose track of vested employees. Even when a company has declared bankruptcy, pension benefits may be protected by the federal Pension Benefit Guarantee Corp. (PBGC)
Tips for Claiming Your Pension
There are a number of resources, as listed above, for locating a missing or unclaimed pension. If you think you once qualified for a pension, don’t assume that you’ll be contacted to claim it. Remember, just because you once worked at a company that offered a pension plan you may not have worked there long enough to become vested. In that case, your pension benefits would have been forfeited when you left the company. To see how any pension income might figure in your retirement plans, try SmartAsset’s retirement calculator. This free tool will estimate how much you’ll have when the time comes to retire.
In most cases, an old pension likely won’t pay enough benefits to live on. You’ll still need to figure out when and how to claim your Social Security benefits and maintain your own savings to support yourself in retirement. A financial advisor can help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
A Coverdell savings account, or a Coverdell Education Savings Account (ESA), is an investment account that is tax-free when used for qualified higher-education expenses.
Assets in Coverdell accounts can be transferred to other family members if the beneficiary doesn’t need the money (whether because of scholarships or other circumstances) and many find the main benefit is that these funds can also be used for K-12 school-related expenses. The biggest drawback is that you cannot contribute more than $2,000 per year, even across multiple accounts.
Here’s more:
Coverdell ESA Basics
How to open: The Coverdell ESA is opened with a brokerage or mutual fund company and its assets are owned by either the parents or the student.
Limits: Contributions are phased out at incomes between $95,000 and $110,000 for single tax filers, $190,000 to $220,000 for married filers (though there are some ways around these limits). Contributions can be made until the student turns 18 and must be withdrawn by age 30. The deadline to open a Coverdell ESA: April 15.
Related: What the IRS says about Coverdell accounts
Investment choices: Whatever is offered by the company with which you’ve opened the account.
Impact on financial aid: Depends on the account owner. Assets owned by a student have a greater negative impact on aid eligibility than assets owned by the parents, though this impact is lessened if the student is still a dependent of the parents.
Related: the savings calculator at Savingforcollege.com. It estimates the total cost of college based on your child’s age and tells you how much you need to save each month to reach that goal. The calculator has plenty of flexibility that allows users to fiddle with the assumptions, and it can even help look up the costs of specific colleges.
Why choose the Coverdell: If you want maximum control over your investments in terms of what you can buy and how often you transact, this is the education savings account for you. Also, unlike with 529 plans, Coverdell assets can be used for elementary- and high-school expenses. However, given the low contribution limits, saving only in a Coverdell will likely not be enough.
Now what? The good news is you don’t have to choose just one of these accounts. You can contribute to each, if you have the resources and it makes sense for your situation. For example, you might participate in a prepaid plan to manage the future costs of tuition, then max out the Coverdell (because you enjoy picking individual stocks, an investment choice not available in 529 plans) to help cover room and board, and contribute to a 529 savings plan for additional savings. Of course, such a strategy would require a lot of cash; for those seeking a place to contribute a few hundred dollars a month, the 529 savings plan is the most popular choice.
Finally, attempt to persuade your kids to choose a degree that has greater chances of paying off (unlike these degrees). Yes, choosing a career you enjoy is important, nearly crucial. But college is an investment, and like every investment, there should be a cost-benefit analysis. Going into a huge amount of debt for a low-paying career makes paying for a car, paying for a home, raising a family, and taking vacations — also important factors in life satisfaction — much more difficult.